LAWS OF THE REPUBLIC OF VANUATU
CONSOLIDATED EDITION 2006

Commencement: 1 January 2004

CHAPTER 202
WORKMEN’S COMPENSATION

Act 2 of 1987

ARRANGEMENT OF SECTIONS

1.	Employers to pay compensation
2. Amount of compensation
3. Insurance
4. Bankruptcy
5. Application

SCHEDULE

WORKMEN’S COMPENSATION

An Act to provide for compensation for injuries and death suffered by workmen in the course of their employment.

1. Employers to pay compensation

(1) An employer shall pay compensation to any of his employees who suffers injury from any accident arising out of and in the course of his employment.

(2) An employer shall pay compensation to the person or persons entitled to the estate of any of his employees who dies as a result of any accident arising out of and in the course of his employment.

2. Amount of compensation

The amount of compensation payable under section 1 shall be in accordance with the Schedule to this Act.

3. Insurance

(1) Every employer shall insure, and maintain insurance, against liability for payment under this Act, and shall display a copy of such insurance at his principal place of business.

(2) Any person not complying with subsection (1) shall be guilty of an offence, and liable on conviction to a fine not exceeding VT 100,000.

(3) This section shall not apply to:

(a) the government;

(b) any person who employs only his spouse, parent, child or grandchildren;

(c) employment in a fishing vessel where the crew are remunerated wholly by shares in the profits of such vessel;

(d) employment exclusively in domestic premises;

(e) any other person or class of persons whom the Minister may by Regulation specify.

4. Bankruptcy

All rights of an employer against an insurer under section 3 shall vest in the employee in the event of the employer becoming bankrupt, or having winding-up proceedings commenced, or any other similar circumstance whatsoever.

5. Application

This Act shall apply –

(a) to all contracts of employment (which in this Act includes any apprenticeship or similar legal relationship) in Vanuatu or in the Greater Economic Zone as from time to time defined;

(b) any ship or aircraft registered in Vanuatu.

SCHEDULE

(Section 2)

AMOUNT OF COMPENSATION

1. The amount payable for death or total disability shall be three times the annual wages of the employee, subject to a maximum limit of two million vatu.

2. For the purposes of this Schedule - 

(a) "total disability" means an injury, whether of a temporary or permanent nature, which incapacitates an employee for any employment which he was capable of undertaking at the time of the accident;

(b) "annual wages" include gross wages and any allowances paid to an employee by the employer and the value of any food, fuel or quarters supplied to an employee by the employer; and any overtime payments or other special remuneration for work done, whether by way of bonus or otherwise, if of constant character or for work habitually performed; but shall not include remuneration for intermittent overtime, or casual payments of a non-recurrent nature, any ex gratia payment whether given by the employer or other person, or the value of a travelling allowance, or the value of any travelling concession or a contribution paid by the employer towards any pension or provident fund, or a sum paid to an employee to cover any special expenses entailed on him by the nature of his employment.

3. The amount payable for any of the following injuries shall be calculated as a percentage of the amount payable for total disability in accordance with the following scale, except that in no case shall the total amount payable exceed the amount payable for total disability:

Percentage of Incapacity	
Loss of two limbs
Loss of both feet
Loss of both hands or of all fingers and thumbs
Total loss of sight
Total paralysis
Injuries resulting in being bedridden permanently
Any other injury causing permanent total disablement
Loss of remaining eye by one-eyed workman
Loss of remaining arm by one-armed workman
Loss of remaining leg by one-legged workman
Very severe facial disfigurement	

100	
		
Loss of arm at shoulder	90	
Loss of arm between elbow and shoulder
Loss of arm at elbow
Loss of arm between wrist and elbow
Loss of hand at wrist
Loss of thumb (including part of a bone)
	80
70
65
60
20	
The pulp of the thumb	6	
		
Loss of a finger (including part of a bone)	10	
The pulp of a finger	2	
Loss of metacarpals - 
first or second (additional)
third, fourth or fifth (additional)	
3
2	
		
Loss of leg above knee resulting in a stump less than 6 inches long	90	
Loss of leg above knee resulting in a stump more than 6 inches long	70	
Loss of leg below knee	45	
Loss of foot	40	
		
Loss of toes -
all of one foot
great, both phalanges
great, one phalanx
other than great, each part with some loss of bone	
15
8
4
1	

Loss of eye - 
eye out
loss of sight of eye
loss of lens of eye
loss of sight of, except perception of light	

40
40
30
40	

Loss of hearing - 
both ears
one ear

Total loss of natural Permanent Teeth - 
Loss of 1, 2, or 3 teeth
Loss of 4, 5, or 6 teeth
Loss of 7 or more teeth	

70
30

4
5
6	

Total permanent loss of use of member shall be treated as loss of member.

The percentage of incapacity for ankylosis of any joint shall be reckoned as from twenty-five to one hundred per cent of the incapacity for loss of the part at that joint, according to whether the joint is ankylosed in favourable or unfavourable position.

Where there is a loss of two or more parts of the hand, the percentage of incapacity shall not be more than for the whole hand.

For the purpose of this Schedule a "one-eyed employee" means an employee who has lost sight of one eye.

4. The amount of payable in the case of an injury not specified in paragraph 3 shall be such percentage of 208 weeks’ wages as is proportionate to the loss of earning capacity permanently caused by the injury, subject to a maximum limit of two million vatu.